Rayonier Advanced Materials Inc has raised €67 million in green financing to advance its strategic investments in biomaterials.
The newly acquired funds will bolster the growth of its subsidiary, RYAM BioNova S.A.S., and support projects aimed at sustainable innovation.
The financing package comprises a €37 million secured term loan from French banks Crédit Lyonnais, Arkéa Banque, and BNP Paribas, set at an initial floating rate of approximately 5 percent and maturing in seven years. Complementing this, SWEN Capital Partners, through its SWEN Impact Fund for Transition 3, will provide €30 million in preferred equity for a 20% ownership stake in BioNova, placing the subsidiary’s valuation at over $160 million.
“The formation of BioNova and this latest round of financing are pivotal in our strategic push into biomaterials,” said De Lyle Bloomquist, President and CEO of RYAM. “With this green capital, we are poised to drive over $40 million in EBITDA from these initiatives by 2027, underscoring our commitment to growth and sustainability.”
BioNova’s future projects include the development of a second-generation bioethanol plant and a prebiotics production initiative. These investments reflect RYAM’s ongoing dedication to diversifying its portfolio and positioning itself as a key player in the bio-based economy.
RYAM’s expansion into biomaterials is part of a broader trend in the industry, where companies are shifting towards sustainable and renewable solutions. High Purity Cellulose, RYAM’s core product, is already essential for various applications in food, pharmaceuticals, and industrial uses. The company’s push into biofuels and biomaterials leverages its existing manufacturing assets in the U.S., Canada, and France, contributing to its $1.6 billion revenue in 2023.
SWEN Capital Partners, recognized for its commitment to sustainable finance, views its investment in BioNova as a strategic move aligned with its mission. Managing over €8 billion in assets, SWEN CP emphasizes social, environmental, and climate-focused investments.
